Top tips to keep your home safe this Christmas

It’s the most wonderful time of the year, so let’s keep it that way!

Nothing would ruin your holiday break more than returning home to find a break-in or water damage. And who wants to start the New Year buried in insurance claims?!

So, before you fully switch off and enjoy some much-needed relaxation, take a look through our top tips to ensure you have a safe and happy Christmas.

Check your Christmas lights

Before you pop your Christmas lights up, make sure you give them a thorough once-over to check for any excessive dust or loose cables. Remember, these lights are typically in in the cupboard for 11 months of the year and excessive storage can sometimes cause damage. It’s always best to check before you plug them in. Make sure the lights also meet the current Australian Standards and avoid overloading one single power board.

Decorating your tree? Lights can certainly add some festive sparkle, but be careful! Lights on trees can become hot so ensure you don’t install them near any flammable items like paper decorations. Then, play it safe when you’re not home and unplug all lights. Read more here for more tips on keeping your tree safe.

Make your home look occupied while on holidays

Heading away this festive season? Great! But remember, empty houses can become a target for the opportunistic so it’s important to make it seem like someone is home. Prepare a plan so while you enjoy yourself with the family and gorge on Christmas ham, you can rest easy knowing your home is safe.

Before you go, enlist a trusted neighbour, friend or family member to help with some easy tricks; they can collect your mail, mow the lawn and bring your bins in and out. Plus with today’s technology, Smart lights are a great way to automate your lighting to mimic your daily habits.

And before you post your #HolidaySnaps, check the privacy settings are updated on all social media accounts. You don’t want the wrong person to realize your house is empty while you’re making sandcastles on the beach!

Update your home insurance and make an inventory of belongings

Take photos, file all receipts and update your insurance prior to going away, just in case! Sometimes, we can be fully prepared but the worst can still happen. One of the most common issues that can arise when making an insurance claim is being unable to provide proof of loss.  If you find yourself in the unfortunate situation where you need to make a claim, it’s very helpful to have current valuation certificates, photos of items, or even an inventory list for the house.

Plus, don’t forget to read up on your insurance policy on unoccupied houses. Some policies require notification of the home being vacant for extended periods, usually 30, 60 or 90 days.

Secure all your tools and belongings in the yard or garage

Make breaking into your home hard! Tools laying around the yard or in an insecure garden shed make it that little bit easier for a person to enter your home. Avoid leaving equipment in easy access areas and ensure your garden shed is locked up. It’s even worth investing in a padlock to make it that little bit more difficult and unappealing for someone to break in.

Leaving a car behind? Make sure it’s completely empty of all belongings, that includes sunglasses, spare change and even any charging cords. If the seats and floor are completely clean, an opportunistic thief is less likely to want to break into it searching for valuable items.

If you have an automated garage, make sure it’s completely secure and even consider turning off the power supply so it can’t be opened by a universal remote.

Lock those windows and doors

Before you head out, make sure you check every window and door in the house. It’s common for criminals to enter through open or unsecured doors or windows – and a break-in would certainly ruin your holidays! If you can, it’s a good time to install deadlocks on doors and security screens on windows. Placing a wooden rod in the track of sliding windows or doors can make it even harder for these points to be opened from outside.

Then, keep your blinds and curtains closed and place all valuables out of sight. The less temptation for a passer-by the better!

Give your utilities a break

It is always a good idea to unplug any electrical items before going away for the holiday break.  Unplug and check your straightener, iron, toaster – the whole lot!

Not only does it help save on unnecessary power usage, but it protects your appliances from any power surges that may happen.

Then, turn off your water at the mains. This will ensure you don’t return to find any pesky water damage!

General Disclosure This article is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a qualified insurance or legal advisor. PSC Property Lync Insurance Brokers is an Authorised Representative (AR 1235681) of Professional Services Corporation Pty Ltd (AFSL 305491).

Do you still have Asbestos in your building?

Asbestos is a banned building product that can no longer be used, despite this, it still exists in many buildings today. The product was banned from 31st December 2003. 

All uses of asbestos were banned from 1st January 2004, except for existing asbestos material already in place known Asbestos Containing Material (ACM) and provided it was used in the same way prior to this date. Also that handling and disposal management applied to the existing material. 

Only specially trained and qualified contractors should be handling ACM as repairs to ACM are not permitted. ACM that has been satisfactorily maintained and monitored can remain. There is a requirement at law to have an asbestos register at the building and any trades that are invited to the building to carry out repairs should be advised of its presence and location so that they may be informed of the location of any asbestos materials. 

When any trades carry out work on anything that is ACM there are special guidelines on Work safe requirements so that work can be performed safely. A register of ACM and associated risk assessments must be reviewed at least every three years as referenced in the website under Dept. of Mines, Industry Regulation and Safety.

Asbestos & Insurance Effects

You should make insurers aware if you know ACM is a product used in or on the building, such as the roof. This information is important to the insurer for many reasons such as;

• The presence of ACM increases costs in replacement, due to increased costs for removal of debris & handling in the event of a claim

• Any claim at site may increase the cost of temporary accommodation & loss of rent, due to contamination risks following a claim

• Extra costly repairs, as handling ACM requires specialist trades, who are experienced in handling asbestos 

• Work, health and safety - Increased compliance on the Council of Owners, to ensure they’re following the rules required for Asbestos Management

Many strata insurers will not insure buildings that contain ACM, such as rooves and the limited insurers who will charge a much higher premium, for many underwriting reasons including those stated above. Any acceptance for insuring property with ACM will depend, first and foremost on how well it is maintained. 

The Strata Titles Act Reform

With new strata reforms just around the corner a 10-year maintenance plan is a new requirement for designated strata company’s which is;

Any scheme with a replacement value of $5,000,000 or more

All schemes 10 Lots or more

Strata Amendments Act 2018 [STAA 2018 s100 (2A)(a)(b)] & draft Strata Regulations S78(1)(a)&(b) 

Further defined in the draft Strata Regulations S76 (1) (a-h), condition report and the method of estimate costs for maintenance are required. As an example, these new requirements would be relevant to designated strata buildings with an asbestos roof. 

Reference & source of information https://strata.wa.gov.au/document-library | https://strata.wa.gov.au/ | https://www.commerce.wa.gov.au/worksafe/asbestos-frequently-asked-questions | www.worksafe.wa.gov.au Legislation | National code of practice for management and control of asbestos in workplaces [NOHSC: 2018] Safe removal of asbestos. 2nd edition. [NOHSC: 2002]

General Disclosure This article is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal ad¬vice. You should consult with a qualified insurance or legal advisor. PSC Property Lync Insurance Brokers is an Authorised Representative (AR 1235681) of Professional Services Corporation Pty Ltd (AFSL 305491).

Cyber & Social Engineering Insurance – It is a growing area of risk

The law today states all companies have a responsibility to ensure that their client’s information is safe from harm’s way.  Your company may be held liable for any loss of client data or any resultant losses to third parties.  The problem for all of us, it is a moving target when it comes to technology and keeping up with how to protect your company’s data. 

These days most of our information is stored on-line in some capacity in our website or electronic records and the ability for hackers to enter our systems is getting easier as hackers are getting more sophisticated and clever in how they manipulate their way into our working and personal lives.

It creates destruction and devastation to those who are affected,  you, your business and your clients, especially if a financial impact occurs or black mail results from the hack e.g. phishing. viruses, malware.   

Minimising your Cyber risk to your business

It is important that cyber insurance becomes part of your ordinary business insurance requirements.  As a strata manager, you store a lot of information and not having cyber insurance to protect losses and costs associated with any cyber-attack, breach, extortion or financial impact would be disruptive to your business and you could attract a fine as the law has been broken and in some cases bankrupt the business.   

Having cyber insurance is a risk management tool, however it is equally important to ensure that your IT security systems and software are up to date. 

Good reasons to consider this cover

By having, a Cyber insurance policy in place provides you with protection against losses and the associated loss of reputation, financial loss but also assists, in making sure your Company survives a hack.

General Disclosure This article is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a qualified insurance or legal advisor. PSC Property Lync Insurance Brokers is an Authorised Representative (AR 1235681) of Professional Services Corporation Pty Ltd (AFSL 305491).

Voluntary Work for your Strata Company

Did you know that when you volunteer your personal service with your Strata Company, you can be covered for the voluntary work undertaken should you be injured?  However, the benefits available to volunteers via this cover is limited, including age restrictions (as an example). 

It is important to make a distinction between cover provided by Workers Compensation insurance versus Voluntary Workers insurance. 

Workers Compensation Insurance covers those who are deemed workers that are paid for their services, in kind or some other remuneration.    

Voluntary Workers Insurance covers those who perform work solely on voluntary basis without reward for their services. 

Workers Compensation, like Strata Titles, the insurance is governed by an Act and therefore both are statutory forms of insurance.   Voluntary Workers insurance is found in strata insurance, but the requirements for this type of insurance differs around Australia and whilst not mandatory in WA, it is a standard inclusion of a strata insurance policy. 

Primarily voluntary workers are covered for the insured events (i.e. Death; Total Loss of a hand eye, foot etc.), loss of income where employed and receiving wages or salaries, domestic assistance, travel expenses, home tutorial expenses, subject to the limitations, excess, terms and conditions of the policy.

Case study – Spring Cleaning Busy Bee

A Strata Company decides to have a busy bee on common area gardens during the warmer spring cleaning months.  None of the residents will be paid for their service.  As the work involved is only voluntary gardening, rather than contract work, the owners are able to save money towards painting the complex at a later stage by arranging the busy bee.  A question is raised at the AGM, are residents covered for an injury from an accident when volunteering for the Strata Company?  

Yes, this is an example of voluntary work and would fall under the coverage provisions provided by Voluntary Workers insurance.  It is always best to review your coverage and know what you are covered for, as age and cover is restricted. Knowing what you are covered for is one of many important aspects before deciding to perform voluntary work. 

General Disclosure This article is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a qualified insurance or legal advisor. PSC Property Lync Insurance Brokers is an Authorised Representative (AR 1235681) of Professional Services Corporation Pty Ltd (AFSL 305491).

Contract with the Local Council to empty bins on common property

Recently it was decided at an AGM that the Strata Company would seek to enter into an agreement with the local City Council, to enter common property for the purpose of emptying the bins.

The benefit of this will see the Strata Company not have to employ a casual person to roll all the bins out weekly to the verge.  The local City Council will do this provided they enter into a contract with the Strata Company, as they don’t want to be liable for any potential damage they may cause. Will your insurance cover this?

1. All agreements should be legally drawn up – so legal advice is paramount.

2. Before you enter into the contract, you must advise your insurer, as some indemnity clauses can prejudice your insurance policy and trigger exclusions. For example, your insurer may not indemnify you for all actions and claims where such arises from negligence by the Third Party performing the work and whom you have signed a contract with that contains a full indemnity, with no rights to recover from the Third Party part or all of the claim.

3. Insurers, if the contract/agreement is proportionate and acceptable, they may endorse the policy accordingly or confirm it is acceptable as per the policy.

General Disclosure This article is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a qualified insurance or legal advisor. PSC Property Lync Insurance Brokers is an Authorised Representative (AR 1235681) of Professional Services Corporation Pty Ltd (AFSL 305491).

Insurance for Common Property & Your Lot Explained

Strata Title Common Property Ownership

As an Owner you have an undivided share of common property. This means you, along with all other Owners of your scheme are responsible for any liabilities that arise from common property ownership. A Strata Company is an unlimited liability company.

Strata Titles Act 1985 WA

The Western Australia Strata Titles Act 1985 (STA) outlines the insurance responsibilities of a Strata Company in Section 53 & 54. The Strata Company shall insure the “building” for the Replacement value, including all fees, charges removal of debris costs and hold a minimum of $5m legal liability insurance. Workers Compensation insurance is required where a Strata Company employs workers, either directly or indirectly as contractors. Refer to your broker to determine your requirements here.

Other insurance is discretionary, however risks are changing and increasing and many discretionary covers are now standard sections in a Strata Insurance policy.

A Strata Company is responsible to ensure the insurance is arranged as mandated by the STA. Building definition Section 53 The STA describes the definition of “building”; includes any building on the parcel for a scheme, whether shown on the strata/survey-strata plan or not and also includes —

(a) proprietors’ improvements and proprietors’ fixtures forming part of the building including paint and wallpaper but excluding carpet and temporary wall, floor and ceiling coverings.

Building as defined in the STA includes Proprietors fixtures and fittings or structures that are fixed to, or forming part of the building, which include inside or outside a Lot.

Proprietors (Owners) Fixtures and Fittings

As an Owner it may be difficult to define personal contents and what is a fixture. A rule of thumb is if it is attached or fixed to the building, it’s a fixture of the building. If you can pick it up and take it with you, it’s personal contents.

A strata manager manages common property. Their duties do not extend inside a lot for maintenance, other than to enforce the by-Laws and arrange repairs on a Lot boundary that impacts common property or other units, such as a leaking shower drain which causes water ingress to a unit below.

In summary Strata Insurance extends limited cover inside your Lot only for what forms part of the building structure as defined by the STA for resultant damage from accidental damage or perils covered by the policy, not your removable contents, as referenced above and illustrated in the table in this pdf document

Commercial Fixtures

When it comes to commercial strata temporary fixtures (i.e. shop fit outs) that are installed inside a Lot and attached to the building, if they are removable at the end of the lease agreement, then these fixtures are not covered by strata insurance, as not defined as part of the building.

Carpets

The STA specifically excludes carpets or other temporary floor, wall or ceiling covering, found inside a Lot. Therefore typically Strata Insurance policies will not cover these items either. The Owner needs to ensure their contents insurance covers these items. *Note that carpets or other fixtures found in Common Property are covered.

What does an Owner need to insure?

Things not covered by strata insurance and including: Removable contents and chattels for e.g. furniture, personal belongings temporary fixtures, like floating floors and carpets etc. as contents insurance.

Your Legal Liability Exposure

As an Owner you also have Legal liability exposure arising out of the use of your Lot. Whether you live in your Lot or you lease your property to a tenant, it is important to ensure that you have insurance protection. Generally when you buy residential contents insurance or Landlords insurance, both policies will provide cover for legal liability insurance.

Does your tenant need insurance?

A tenant living in strata should have contents insurance for themselves, similarly to cover their own contents, but also their legal liability. A tenant can become liable to the Strata Company for negligent claims that encroach beyond the confines of the Lot and extend into common property.

Other Insurance Responsibilities Refer to other Strata Insurance knowledge flyers. General Disclosure This article has been prepared for informational purposes only, and is not legal advice and should not be relied on as legal or insurance advice. You should consult with a qualified insurance or legal advisor.

General Disclosure This article is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a qualified insurance or legal advisor. PSC Property Lync Insurance Brokers is an Authorised Representative (AR 1235681) of Professional Services Corporation Pty Ltd (AFSL 305491).

Responsibilities to Maintain, Disclose and Keep Insured

A strata company is required to adhere to many different Acts of parliament, both state and federal. In this article we discuss when a duty to disclose is required when obtaining and renewing your insurance and examine the legal requirements around maintenance obligations      

At this point it is pertinent to direct you to the Western Australian Strata Titles Act 1985 (STA), in particular the sections noted below.    

Statutory Duty to Insure

STA s35j,

A strata company shall-

Effect insurance in accordance with Division 4

STA s53D & s54

A strata company shall —

(a) Insure and keep insured the building to the replacement value

(b) effect and maintain insurance in respect of damage to property, death, or bodily injury for which the strata company could become liable, not less than $5 000 000 or such other amount as may be prescribed in place of that amount.

Statutory Duty to Maintain 

STA s35

 A strata company shall —

(b) Control and manage the common property for the benefit of all the proprietors; and

(c) Keep in good and serviceable repair, properly maintain and, where necessary, renew and replace —

 (i)The common property, including the fittings, fixtures and lifts used in connection with the common property; and

(ii)  Any personal property vested in the strata company,   and to do so whether damage or deterioration arises from fair wear and tear, inherent defect or any other cause

Statutory Duty of Disclosure

Insurance Contracts Act 1984 s21

Subject to this Act, an insured has a duty to disclose to the insurer, before the relevant contract of insurance is entered into etc. and the insured has on-going duty to disclose, as at renewal as this is considered a new contract. 

Maintenance Is Broad

The simple fact is that maintenance is required from time to time on any property. Maintenance arises from fair wear and tear, accidental damage or inherent defect.

It is the expectation of the insurer that a strata company will look after the building, as outlined by the STA .

When a maintenance issue is identified that has the potential to increase the risk of further damage, or expose the strata company to legal liability, these matters should be notified to the insurer, along with a scope of works and action to repair.  

To minimise liability the strata company should demonstrate that they are proactive in addressing the issue and keep all interested parties notified of the situation. This action will be seen as favourable to the insurer. 

STA s35k

A strata company shall-

Ensure that statutory obligations for complying with notices and orders of any competent public authority or local government requiring repairs to or work to be done in respect of the parcel or building, or anything in, on or over it.

This section is very relevant to identified building defects, which we will discuss in the next section.

Definition of Building Defect 

A defect within new buildings is usually areas of non-compliance with the Building Code of Australia, various Australian Standards and unacceptable tolerances and standards.

A defect in an older building may also be caused by lack of adequate maintenance. A building, product or application can become defective through age and lack of maintenance that breaks down and the failure is not repaired.

General routine maintenance items, such as fixing tiles, repainting, normal wear and tear and ageing are not considered as defects.

Building Inspection Reports

A strata company can satisfy S35 by undertaking building maintenance inspection reports.  

A building inspection report will outline maintenance issues to be addressed immediately and issues that may arise in the future, but do not need immediate attention.

The results of this report should form the basis of a building maintenance plan.  In the current STA reforms it is proposed that building maintenance plans will be a statutory requirement, which will better support the requirement to maintain.

In the process of obtaining inspection reports and developing maintenance plans, it is important to note that a breach may occur if the strata company ought to have known about the problem (i.e. identified from the inspection report) but chose to ignore it or decided to address the problem at a later stage. Once an issue is known and the urgency is determined, it needs to be acted on. 

Take the following as an example - a water pipe bursts in a building. This may be considered maintenance fair wear and tear. However, if a pipe had burst previously and an expert plumbing report revealed an on-going issue of corrosion and no plan had been put in place to rectify the issue – this would be a violation of policy.

To ensure insurance coverage remains in place any issue that arises from a building inspection that may increase the risk to the insurer should be disclosed. An action plan should also be shared with the insurer as well as any interim measures for unsafe situations that need to be adopted, such as dangerous electrical wiring to be made safe. 

Building Cladding - A Timely Example

Recent cladding audits are endeavouring to identify buildings that have used a particular cladding product ACP - Aluminium Composite Panels, on the outside of buildings.  It has been established that this cladding has contributed to a number of fires on apartment buildings, both in Australia and overseas, leading to increased person and property loss. 

Whilst the product is not defective the application of its use as a building cladding product is a fire hazard and it is part of the responsibility of a strata company to undertake such audits where appropriate.

In Summary

Legally speaking, a strata company has the following key responsibilities;

• A duty to insure

• A duty to maintain

• A duty to disclose

A proactive strata company will adopt a building maintenance plan to ensure the building is looked after.  Any maintenance of a building will involve either repairing defective items or wear and tear issues.  It will be supported by accurate budgets and scope of works.

To ensure coverage remains in place at all times the strata company will ensure that the insurer is notified of the problem and solution. 

Follow these simple steps of transparent communication with all interested parties and your business will avoid any uncomfortable conversations with your insurance provider.

References

http://www.buildingdefects.com.au/

https://slp.wa.gov.au/legislation/statutes.nsf/main_mrtitle_938_homepage.html

https://www.legislation.gov.au/Details/C2016C00820

General Disclosure This article is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a qualified insurance or legal advisor. PSC Property Lync Insurance Brokers is an Authorised Representative (AR 1235681) of Professional Services Corporation Pty Ltd (AFSL 305491).